description of the share buyback program 2024

Rhea-AI Summary

Air France-KLM (AFLYY) has announced its 2024 share buyback program, authorized by shareholders on June 5, 2024. The program allows the company to acquire up to 10% of its share capital, with a maximum of 26,259,634 shares available for purchase at a price not exceeding €40 per share. Key objectives include:

1. Canceling shares to reduce capital
2. Coordinating stock liquidity
3. Allocating shares for securities conversion
4. Distributing shares to employees and corporate officers
5. Using shares for payment in external growth transactions

The program will run for 18 months from the authorization date. This initiative demonstrates Air France-KLM's commitment to enhancing shareholder value and optimizing its capital structure.

Positive

• Authorization to repurchase up to 10% of share capital, potentially increasing shareholder value
• Flexibility to cancel shares, potentially improving earnings per share
• Ability to use shares for employee compensation and retention programs
• Option to use shares as currency for future acquisitions or growth opportunities

Negative

• Maximum purchase price of €40 per share may limit buyback effectiveness if market price exceeds this level
• Potential reduction in cash reserves or increased debt to fund the buyback program

DESCRIPTION OF THE SHARE BUYBACK PROGRAM

AUTHORIZED BY THE SHAREHOLDERS’ MEETING OF JUNE 5, 2024

Pursuant to Article 241-2 of the General Regulations of the Autorité des Marchés Financiers (AMF), the purpose of this description is to present the objectives and terms of the share buyback program authorized by the Shareholders’ meeting of June 5, 2024.

• Securities concerned: ordinary shares issued by AIR FRANCE – KLM.
  
  
• Maximum amount of the share capital that may be acquired by the Company: 10 %.
  
  
• Maximum number of shares that may be acquired by the Company, based on the number of shares composing the share capital as of June 30, 2024: 26,276,986, but considering the 17,352 treasury shares, only 26,259,634 shares may be purchased.
  
  
• Allocation of the treasury shares as of June 30, 2024: the 17,352 treasury shares as of June 30, 2024 will be allocated to meet obligations arising from share allotment plans in respect of the remuneration of corporate officers.
  
  
• Maximum purchase price per share: €40.
  
  
• Objectives :
  
  

The objectives of the share buyback program under the terms of 21^st resolution of the Shareholders’ meeting of June 5, 2024 are as follow:

1. to cancel them by way of a capital reduction,
2. to allow an investment firm to coordinate stock liquidity within the framework of a liquidity contract in compliance with the Compliance Charter recognized by the AMF,
3. to allocate shares upon exercise of the rights to shares attached to securities issued by the Company or by companies in which it holds, either directly or indirectly, more than half of the share capital and that grant the right to the allocation of Company shares via conversion, exercise, repayment, exchange, presentation of a warrant or any other means,
4. to carry out any allocation or sale of shares to employees and/or corporate officers of the Company and companies, located in France or internationally, related to it under the conditions set forth in Article L. 225-180 of French Commercial Code, any allocation of free shares, any employee shareholding scheme, any Company compensation scheme, within the context of, in particular, the relevant provisions set forth under the French Commercial Code and/or French Labor Code, or French or foreign legal and regulatory provisions and the execution of any hedging transaction associated with these related party transactions and commitments of the Company, under the conditions provided for by the market authorities and at the times at which the Board of Directors or the person acting pursuant to a delegation of power granted by the Board of Directors takes action,
5. to hold or remit shares in order to use them as payment or in an exchange offer within the framework of external growth transactions,
6. and, more generally, to engage in any market practice that may be admissible by law or by the AMF and to execute any transaction in compliance with the applicable regulations, it being specified that, in such a case, the Company would inform its shareholders by means of a press release.

• Duration of the program: 18 months as of the Shareholders’ meeting of June 5, 2024.
  
  

Attachment

• AFKLM - Description of the share buyback program 24072024 clean

FAQ

What is the maximum number of shares Air France-KLM (AFLYY) can repurchase under its 2024 buyback program?

Air France-KLM can repurchase up to 26,259,634 shares under its 2024 buyback program, which represents 10% of its share capital as of June 30, 2024, after accounting for existing treasury shares.

What is the maximum price per share for Air France-KLM's (AFLYY) 2024 share buyback program?

The maximum purchase price per share for Air France-KLM's 2024 share buyback program is €40.

How long will Air France-KLM's (AFLYY) 2024 share buyback program last?

Air France-KLM's 2024 share buyback program will last for 18 months from the authorization date of June 5, 2024.

What are the main objectives of Air France-KLM's (AFLYY) 2024 share buyback program?

The main objectives include canceling shares to reduce capital, coordinating stock liquidity, allocating shares for securities conversion, distributing shares to employees and corporate officers, and using shares for payment in external growth transactions.